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LAW ON AMENDMENTS TO A NUMBER OF ARTICLES OF THE LAW ON PRIVATE BUSINESS

LAW ON AMENDMENTS TO A NUMBER OF ARTICLES OF THE LAW ON PRIVATE BUSINESS

In order to create favorable conditions for business investment and raise the effectiveness of State management of business operations;

Pursuant to Article 84 of the 1992 Constitution of the Socialist Republic of Vietnam;

This Law amends a number of Articles of the Law on Private Business passed by the National Assembly of the Socialist Republic of Vietnam on the 21st of December 1990.

Article 1.- The following amendments are made to the Law on Private Business:

1. Article 10 is amended as follows:

"Article 10.-

Within thirty days after receiving the application, the People's Committee has to either issue or refuse to issue the founding permit of the business. In case of refusal, the reason must be clearly stated. If the applicant deems that the refusal is not appropriate, he/she may complain to the State office of immediately higher rank than the People's Committee which is authorized to issue the founding permit."

2. The first paragraph of Article 11 is amended as follows:

"Within sixty days after being issued with the founding permit, the private business owner has to register for business at the planning office of the same level as the People's Committee which had issued the founding permit".

3. The last paragraph of Article 12 is amended as follows:

"Within seven days after issuing the business registration certificate, the planning office has to send a copy of the certificate attached to the file of the business to the tax, financial and statistical offices and to the economic and technical management offices of the same level".

4. Point 1 of Article 14 is amended as follows:

"1. To ask for permission from the People's Committee of the province or the city directly under the Central Government where the branch office or representative office of the company is located, and to register for business at the planning office of the same level as the People's Committee which has allowed the establishment of the branch office or representative office, as stipulated in Article 8 and Article 11 of this Law".

5. Article 15 is amended as follows:

"Article 15.-

In the event of a change in the purpose, field and business line, the initial investment and other contents in the file for business registration, the business owner has to remake the declaration to the planning office which had issued the certificate of business registration. For a private business which has been granted a founding permit by the People's Committee of the province or the city directly under the Central Government, the owner must also publicize the changes in the press".

6. Article 17 is amended as follows:

"Article 17.-

A private business in bankrupty is one which is facing with difficulties or has incurred losses in its business operations and which, even after taking the necessary financial measures, still is unable of paying its due debts.

The settlement of the bankruptcy of a private business shall be effected as stipulated in the Law on Business Bankruptcy."

7. Article 23 is amended as follows:

"Article 23

The owner of a private business is entitled to lease all his/her business. Before effecting the lease, he/she has to report in writing to the planning office which has issued the certificate of business registration. During the period of the lease, the owner of the private business still has to take responsibility before law in his/her capacity as owner of the business."

8. The last paragraph of Article 24 is amended as follows:

"After completing the procedures to sell his/her business or to merge it with another business, the owner of the private business has to make a declaration with the planning office which had granted it the certificate of business registration, so as to delete its name from the business registry. He/she must also publicize this change".

9. The term "Council of Ministers" is changed to "Government" and the term "Chairman of the Council of Ministers" is changed to "Prime Minister".

Article 2.- This Law takes effect from the 1st of July, 1994.

Any previous regulations contrary to this Law are now annulled.

Article 3.- The Government shall amend the documents providing details for the implementation of the Law on Private Business to make them conform to this Law.

This Law was passed by the Ninth National Assembly of the Socialist Republic of Vietnam at its Fifth Session on the 22nd of June 1994.

The Chairman of the National Assembly

NONG DUC MANH